Med-Emerg International Inc. trims annual loss by 97% with strong improvement in revenues and gross margins and reports quarterly income from continuing operations.



    TORONTO, April 17 /CNW/ - Med-Emerg International Inc. (OTCBB - MDER,
MDERW), announced today that for the year-ended December 31, 2006 revenues
were $17.7 million compared to $13.8 million for the year-ended December 31,
2005, an increase of 28% (all amounts are $US unless otherwise stated). For
the twelve month period, gross margins improved from $3.5 million in 2005 to
$4.9 million in 2006, an increase of 42%. Revenues and gross margins from
continuing operations for the three months ended December 31, 2006 increased
14% and 19%, respectively, compared to the same period in 2005. The increase
in revenue reflects the increasing impact of the Company's Pain Management
business, as well as improved performance in its Infusion business.
    
    The Company's financial statement information is summarized below.

                              Three Months Ended            Year Ended
                                 December 31               December 31
                           ------------------------  ------------------------
                              2006         2005         2006         2005

    STATEMENT OF OPERATIONS
    Revenue                     4,509        3,955       17,717       13,785
    Gross margin                1,265        1,059        4,942        3,492
    Income (loss) from
     continuing operations         38          (41)         (27)        (969)
    Income (loss) from
     discontinued operations     (333)           3          851          113
    Net income (loss)
     attributable to common
     shareholders                (295)         (38)         824         (857)

    Net income (loss) per
     common share
      Continuing operations      0.00        (0.00)        0.00        (0.02)
      Discontinued
       operations               (0.01)        0.00         0.01         0.00
    Weighted average
     shares outstanding,
     basic                 58,277,696   58,277,696   58,277,696   58,277,696



                                                   December 31,  December 31,
    Balance Sheet Data:                                   2006          2005
      Working Capital Surplus (deficit)                  3,912           (57)
      Total Assets                                       7,901         4,618
      Long-term debt                                       453           600
      Shareholders' equity - Canadian GAAP               1,424            81
      Shareholders' equity - US GAAP                       907            81
    

    For the year-ended December 31, 2006, the Company reported a Loss from
continuing operations of ($27K) compared to a loss of ($969K) for the
year-ended December 31, 2005. For the three months ended December 31, 2006,
Income from continuing operations increased from a loss of $41K in 2005 to
income of $38K in 2006. The improved performance comes from the Infusion and
Pain Management businesses. At the same time the Company was able to report
income attributable to common shareholders for the year ended December 31,
2006 of $824K ($0.01 per share) compared to a loss in 2005 of ($857K) ($0.02
per share) in 2005.
    Dr. R. Zacharias stated "2006 was a busy year. We successfully settled
outstanding litigation regarding the Department of National Defence contract,
increased revenues from continuing operations by 28% and, more specifically,
in the Medical Services business, increased revenues by 75%. The Medical
Services business includes the Infusion and Pain Management businesses.
Infusion revenues increased 50% and Pain Management revenues increased 104% as
compared to 2005. The increase was the result of tremendous effort on the part
of our team. During the fourth quarter the decision was taken to exit the
Family Practice Clinic business. Consequently this business, which was
previously recorded as part of the Medical Services business, was reclassified
as Discontinued Operations, in the quarter. At this time, we continue to focus
on the Medical Services business and the opportunities that it presents to
us."

    MEII specializes in the coordination and delivery of health care services
across Canada. These services include community-based infusion centers, an
integrated chronic pain management program, healthcare consulting, and health
human resource management, including physician and nurse staffing.

    Certain oral and written statements of the management of the Company
included in this press release may contain forward-looking statements within
the meaning of Section 27A of the U.S. Securities Act of 1933, and Section 21E
of the U.S. Securities Exchange Act of 1934. These forward-looking statements
include statements about the Company's marketing strategy, future sales
growth, profitability, competitive position, and release of new products. The
words "plan", "expect", "believe", "intend", "anticipate", "forecast",
"target", "estimate" and similar expressions identify forward-looking
statements. Forward-looking statements are based on assumptions made by and
information currently available to the Company. Investors are cautioned that
these forward-looking statements are neither promises nor guarantees, and are
subject to risks and uncertainties that may cause future results to differ
materially from those expected. Our actual results, performance or
achievements could differ materially from those expressed or implied by the
forward-looking statements as a result of a number of factors, including but
not limited to, changes in economic conditions generally and in our industry
specifically, legislative or regulatory changes that affect us, the
availability of working capital, changes in our operating strategy or
development plans, our ability to attract and retain qualified personnel, and
changes in our acquisition and capital expenditure plans, and the risks and
uncertainties discussed under the heading "RISK FACTORS" in Item 1A of our
Annual Report on Form 10-K for the fiscal year ended December 31, 2006.The
Company does not undertake to review or update these forward-looking
statements.

    %SEDAR: 00014075E




For further information:

For further information: Ramesh Zacharias, CEO, Med-Emerg International
Inc., Tel: (905) 858-1368, Email: rzacharias@med-emerg.com

Organization Profile

MED-EMERG INTERNATIONAL INC.

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